Honda Motor (NYSE:HMC) versus Ideanomics (NASDAQ:IDEX) Critical Contrast

Honda Motor (NYSE:HMC) and Ideanomics (NASDAQ:IDEX) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Insider and Institutional Ownership

5.0% of Honda Motor shares are owned by institutional investors. Comparatively, 15.2% of Ideanomics shares are owned by institutional investors. 21.5% of Ideanomics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Honda Motor and Ideanomics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Honda Motor $124.25 billion 0.42 $6.18 billion $3.59 8.47
Ideanomics $26.76 million 37.41 -$98.22 million ($0.43) -4.86

Honda Motor has higher revenue and earnings than Ideanomics. Ideanomics is trading at a lower price-to-earnings ratio than Honda Motor, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Honda Motor has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Ideanomics has a beta of -0.47, meaning that its stock price is 147% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Honda Motor and Ideanomics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Honda Motor 0 0 0 0 N/A
Ideanomics 0 0 1 0 3.00

Ideanomics has a consensus target price of $7.00, indicating a potential upside of 234.93%. Given Ideanomics’ higher possible upside, analysts plainly believe Ideanomics is more favorable than Honda Motor.

Profitability

This table compares Honda Motor and Ideanomics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Honda Motor 6.57% 10.76% 4.53%
Ideanomics -79.71% -19.57% -15.12%

Summary

Honda Motor beats Ideanomics on 8 of the 13 factors compared between the two stocks.

Honda Motor Company Profile

Honda Motor Co., Ltd. engages in the manufacture and sale of automobiles, motorcycles, and power products. It operates through the following segments: Automobile, Motorcycle, Financial Services, and Power Product and Other Businesses. The Automobile segment manufactures and sells automobiles and related accessories. The Motorcycle segment handles all-terrain vehicles, motorcycle business, and related parts. The Financial Services segment provides financial and insurance services. The Power Product and Other Businesses segment offers power products and relevant parts. The company was founded by Soichiro Honda on September 24, 1948 and is headquartered in Tokyo, Japan.

Ideanomics Company Profile

Ideanomics, Inc. is a global company focused on facilitating the adoption of commercial electric vehicles and developing next generation financial services and Fintech product. The firm operates through the Mobile Energy Global (MEG) and Ideanomics Capital business units. Its electric vehicle division, MEG, provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity, as well as financing and charging solutions. Ideanomics Capital includes DBOT ATS and Intelligenta, which provide financial services solutions powered by AI and blockchain. The company was founded by Shane B. McMahon on October 19, 2004 and is headquartered in New York, NY.

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